U.S. Concrete, Inc. (NASDAQ:USCR) Q2 2017 Earnings Conference Call - Final Transcript
Aug 08, 2017 • 10:00 am ET
an additional export dock; we continue to have a large attractive pipeline of potential accretive acquisitions, which we expect to further enhance and supplement our organic growth.
In fact, we are currently in various stages of discussions and negotiations with 21 potential acquisition targets. Additionally, we remain very focused and committed on the potential to enter a new regional market. I'll now take you through each of our markets. In the greater New York metro area, which represented 25% of our revenue in this quarter, we continue to see strong demand for offices, hotels and multifamily residential in the entire region.
Residential construction was relatively high in the Bronx and Manhattan, with unit starts more than 60% higher than past year averages in both borrows. Lawmakers recently passed an Affordable Housing Bill, aimed to stimulate multifamily residential construction in New York City, which should provide 2,500 new affordable apartments annually through 2020.
The New York metro area was ranked the top Metro area for new multifamily permits through May of 2017, with a 68% increase over the prior year period. With last year's acquisitions in this region, we remain well positioned to capture the increased demand from recently passed funding legislation by the Port Authority.
The 10 year $32 billion plan will refocus on redevelopment and revitalization of the entire Metro area's infrastructure. In addition, in a report recently issued by the New York Economic Development Corp., $1.6 billion in public and private funding is being directed towards the revitalization of the North Shore waterfront in Staten Island.
The development, which is projected to generate over 2,000 new jobs and include over 4,000 housing units and 200,000 square feet of space, will include new housing, major retail developments, iconic attractions, transportation upgrades and waterfront parks. Our market-leading plant network in the New York City market and in Staten Island, in particular, will allow us to compete for a significant portion of the increased demand from this robust project pipeline.
Our Washington D.C. and Northern Virginia market remains an area of significant growth. Over 100 projects have currently broken ground, representing over 20 million square feet of space and $9 billion of construction to be delivered through 2019. With the opening of our new greenfield plant in Lorton, Virginia, we now have six concrete plants servicing this growing market area.
Our ready-mixed concrete plant network is well positioned to take advantage of the population influx in the area driving office, retail and residential construction.
In Dallas/Fort Worth, which represented 25% of our revenue this quarter, significant rainfall, particularly in June, resulted in deferral of sales volumes. However, we remain extremely active in this vibrant market. Dallas/Fort Worth has one of the strongest population inflows and employment growth rates in the country.
Housing permits have increased over 30% from this time last year and continued growth is expected. Dallas/Fort Worth is also one of the top apartment building markets in the US, with over 50,000 units under construction and less than 5%